Federal legislation of pay day loans is truly a victory for states’ rights

Why the us government must intervene to limit lending that is predatory

Back 2014, throughout the very first period of their hit HBO show “Last Week Tonight,” John Oliver took in the payday loan industry. Boggled by loans that carried as much as a 1,900 percentage that is annual (APR), Oliver offered up a revised form of the “Lion King” theme song. “It’s the circle of financial obligation!” he sang. “And it screws us all.” Oliver explained that the outrages associated with cash advance industry couldn’t be stopped because “they are extremely proficient at avoiding legislation.”

Not any longer. The customer Financial Protection Bureau (CFPB), the agency faced with implementing and enforcing consumer that is federal, simply revealed a unique rule establishing, the very first time, consistent nationwide criteria for pay day loans and comparable kinds of credit. Continue reading